 |
CBN to Sanction Banks for Rejecting Old, Small Dollar Denominations |
The Central Bank of Nigeria (CBN) has announced its intention to sanction Deposit Money Banks (DMBs) and authorized foreign exchange dealers for rejecting old and small denominations of United States Dollar bills.
In a circular issued by the Acting Director of Currency Operations Department, Mr. Mohammed Solaja, with reference: COD/DIR/INT/CIR/001/017, the CBN stated that its market intelligence had revealed the continued rejection of these Dollar notes, which it deemed unacceptable.
The CBN emphasized that its earlier circular, number COD/DIR/INT/001/002, dated April 9, 2021, remains in force, and its provisions will be applied against any bank or authorized foreign exchange dealer who violates the guidelines.
In the new circular dated June 27, 2024, the CBN insisted that all parties must adhere to its directives. It mandated that all DMBs and authorized foreign exchange dealers must accept old series and small denominations of Dollars brought by their customers for deposit.
The circular added, “The Central Bank of Nigeria will not hesitate to sanction any DMB or authorized foreign exchange dealer who refuses to accept old series/lower denominations of US Dollar bills from their customers.
“In addition, all authorized foreign exchange dealers are advised to desist from defacing or stamping US banknotes, as such notes always fail authentication tests during processing and sorting.”
